Each year, the federal government spends billions of dollars on contracts with private businesses in a variety of industries from defense to infrastructure in order to provide goods and services. When a business with a US government contract knowingly submits a false or misleading claim for undue payment, this is considered a violation of the False Claims Act and is illegal. The False Claims Act lets Pennsylvania whistleblowers with evidence of government contract fraud file a qui tam lawsuit against the contractor committing fraud and share in the government’s financial recovery. A Pennsylvania government contract fraud lawyer can help you file a lawsuit and protect your rights throughout the litigation process.
At Tycko & Zavareei LLP, our nationally recognized whistleblower attorneys have a proven track record of success in helping whistleblowers uncover fraud against the government and have recovered over $8 billion in defrauded funds to date. If you have evidence of fraudulent activity, contact our government contract fraud lawyers today for a free and confidential qui tam case evaluation. Our lawyers help clients in Pennsylvania and throughout the U.S.
What is the False Claims Act?
The False Claims Act (FCA) is a federal anti-fraud law that President Abraham Lincoln enacted during the 1800s to combat civil war defense contractors who were supplying the Union army with defective supplies and weapons. The qui tam provision of the FCA allows private individuals with evidence of fraud to file a lawsuit against the wrongdoer on behalf of the US government. Qui tam law also rewards whistleblowers whose tips lead to recovered funds with a significant portion of the total that is recovered.
What is Government Contract Fraud?
The term government contract fraud covers a wide range of conduct that is illegal under the FCA. In general, any time a contractor or subcontractor submits a fraudulent or false claim to the government with the intention of procuring unwarranted and unjustified funds, it is considered government contract fraud. Whistleblowers can help combat fraud through a qui tam lawsuit and, in turn, help protect taxpayers’ interests. Common examples of fraud seen in Pennsylvania government contract fraud lawsuits include:
- Providing the government with goods or services that are not in line with the terms agreed to in the contract
- Providing the government with substandard or defective goods or services
- Submitting false or fraudulent claims for payments for inflated costs of materials or labor
- Using bribery, bid-rigging, kickbacks, or other illegal tactics to obtain a government contract
- Failure to comply with price reduction requirements, best pricing requirements, or the Trade Agreement Acts
- Moving the costs from one government contract to another or misallocating costs between contracts, otherwise known as cross-charging
- Misrepresenting the cost of a project or the project’s status to continue receiving government funds
- Price-fixing, or when contractors agree to increase the price of goods or services to increase profit
- Double-billing for work that was performed or billing for work that was not performed
- Violations of the Davis-Bacon Act or failing to meet prevailing wage standards
In cases where the fraud is being committed by a federal government contractor, a whistleblower can file a claim under the federal FCA. If the offender is contracted by state or local government, a claim could be brought under Pennsylvania whistleblower law. Contact an experienced government contract fraud attorney in Pennsylvania who can help you determine which whistleblower program your claim should be filed under.
How Are Pennsylvania Government Contract Fraud Whistleblowers Protected?
Pennsylvania whistleblowers are protected from retaliation under the FCA and other anti-retaliation laws. Types of retaliation that may warrant a separate against a whistleblower’s employer include being fired, demoted or suspended, threatened, harassed, or discriminated against for any whistleblower actions.
What is the Pennsylvania Whistleblower Law?
The Pennsylvania Whistleblower Law is an anti-retaliation law that pertains to employees who work for a “public body,” which is broadly defined to include state and local government offices, as well as any business that receives government funding. This law protects Pennsylvania qui tam relators under these categories from being retaliated against for reporting government contract fraud.
Notable Pennsylvania False Claims Act Settlements
Lawsuits brought under the FCA are among the government’s main tools to combat fraud and the waste of taxpayer funds. In 2021, FCA claims led to the recovery of $5.6 billion. Here are some notable Pennsylvania government contract fraud cases from the past several years:
- 2015: Kenneth Narzikul of Media, PA was sentenced to 37 months in prison and ordered to pay restitution of $1.2 million for defense contract fraud relating to the manufacturing of military helicopters.
- 2016: Pennsylvania-based government contractor Materials Sciences Corporation agreed to pay over $200,000 over allegations it billed federal agencies for costs relating to a fishing yacht.
- 2022: Lancaster-based Defense Intelligence Agency (DIA) contractor Reveal Global Consulting, LLC agreed to pay $820,000 to resolve claims of improper billing to the DIA.
Contact a Pennsylvania Government Contract Fraud Attorney
If you are considering filing a Pennsylvania government contract fraud claim, it is advisable to consult with an experienced whistleblower attorney who can determine the strength of your claim, help you file your claim under the appropriate whistleblower program, advocate on your behalf, and protect you from employer retaliation.
At Tycko & Zavareei LLP, our whistleblower attorneys are private practice experts and former DOJ prosecutors who specialize in the field of whistleblower qui tam lawsuits, from defense contract fraud to healthcare fraud. If you have evidence of a government contractor who is in violation of the False Claims Act, contact our government contract fraud lawyers today for a confidential and free case evaluation.
